{"id":21043,"date":"2020-12-04T11:46:35","date_gmt":"2020-12-04T06:16:35","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=21043"},"modified":"2020-12-04T11:46:37","modified_gmt":"2020-12-04T06:16:37","slug":"know-all-details-about-the-gst-reconciliation-in-singapore","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/know-all-details-about-the-gst-reconciliation-in-singapore\/","title":{"rendered":"Know all Details about the GST Reconciliation in Singapore"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Singapore is the largest financial centres, due to which international\nbusinesses are booming there. Companies that set up business in Singapore have\nto register with the Inland Revenue Authority of Singapore (IRAS), for filing\nGST and other forms of tax returns. GST Reconciliation in Singapore is the\nprocess where data or input provided by a supplier to match the data.&nbsp; <\/p>\n\n\n\n<p>Through the process of reconciliation, any form of\nmismatches or omission would be avoided. The company carrying out this process\nwould be capable of claiming some form of input tax credit. Plus, it would also\nbe an advantage if reconciliation is carried out regularly. In the eyes of\nIRAS, the company would be reputed. It is mandatory for the business to file\nGST returns within a prescribed period of time. Similarly, it is important that\nthe business or parties carry out the reconciliation process frequently.<\/p>\n\n\n\n<p>The rate of GST charged in Singapore is at 7%. So basically,\nGST would be levied on a sale price of goods manufactured and other services\nrendered. Once it is levied, then the amount of GST collected would be provided\nto the relevant authority.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/know-all-details-about-the-gst-reconciliation-in-singapore\/#What_is_the_GST_Reconciliation_in_Singapore\" >What is the GST Reconciliation in Singapore?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/know-all-details-about-the-gst-reconciliation-in-singapore\/#Why_is_the_GST_Reconciliation_carried_Out\" >Why is the GST Reconciliation carried Out?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/know-all-details-about-the-gst-reconciliation-in-singapore\/#Why_is_GST_Reconciliation_Required\" >Why is GST Reconciliation Required?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/know-all-details-about-the-gst-reconciliation-in-singapore\/#What_happen_in_case_GST_Reconciliation_is_not_carried_out\" >What happen in case GST Reconciliation is not carried out?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/know-all-details-about-the-gst-reconciliation-in-singapore\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_GST_Reconciliation_in_Singapore\"><\/span>What is the GST Reconciliation in Singapore?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>To understand the meaning of GST reconciliation in <em><strong>Singapore<\/strong><\/em><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Singapore\"><em><strong>[1]<\/strong><\/em><\/a><\/sup>, it is first important to know what reconciliation is. Reconciliation is the term which is generally used in accounting processes, for comparing &amp; checking records and other related documents. Mainly, the reconciliation is carried out by a business entity in order to understand, if there are any forms of mismatch in figures provided by a company and also to compare them in setting of records. Whenever reconciliation is carried out, then, there must be matching of records to the figures with a reconciled amount.<\/p>\n\n\n\n<p>The GST reconciliation in Singapore is understood as matching records and data. In the process, data provided by a supplier of goods and services is analysed and also matched with data of the receiver of goods and services. The process is important in matching information of the receipts to the invoices charged. Once process of reconciliation is carried out, then it becomes simple to provide correct information to the IRAS and to avoid any form of penalties. Hence, if there are any mismatches in records of GST, then reconciliation would help in correcting the mentioned errors.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/gstr-1-filings-and-voluntary-compliance\/\">GSTR-1 \u2013 Everything you need to know about Filings and Voluntary Compliance<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_is_the_GST_Reconciliation_carried_Out\"><\/span>Why is the GST Reconciliation carried Out?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>GST reconciliation in Singapore is carried out to provide ease of records\nto the authority. The other reasons are as follows:-<\/em><\/strong><\/p>\n\n\n\n<ul><li>Reconciliation is a process of matching data\nthat is provided by the supplier to the information\/data received by the\nend-user of goods.<\/li><li>All receipts and invoices are matched during a\nperiod of the accounting term for accuracy.<\/li><li>When GST reconciliation is carried out, a\nbusiness can ensure that no form of receivables and revenue obtained from sales\nand purchases can be wrongly reported to the IRAS.<\/li><li>The GST reconciliation is carried out in order to\nensure that there is no form of confusion or mismatches caused while filing of\nthe GST return to the relevant authority.<\/li><li>Through a process, this makes it simple for an\nentity and an authority to match GST returns properly.<\/li><li>The reconciliation is carried out so that no\nwrong inputs are provided to an authority.<\/li><li>The GST reconciliation process, can provide\nbenefit to vendors and sellers they can claim such benefits from the IRAS when GST\nreturn is filed.<\/li><li>The process is carried out so that the vendor\ncan claim some form of input tax credit from the IRAS.<\/li><li>In case invoices are not reconciled regularly,\nthen to secure ITC (Input Tax Credit) becomes impossible for the vendor. Hence\nclaiming the benefit of an input tax credit is necessary to reconcile GST\nregularly.<\/li><li>Annual returns can be differentiated from the\nGST returns. For example, GST return is compulsory for any business that\nsatisfies criteria for conducting business activities. These returns must be\nfiled quarterly, i.e. at every three months. Annual returns required to be filed\nby the company on the regular basis. Hence, while having GST reconciliation, it\nis necessary to match the differences and check the GST returns and annual\nreturns.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Is it Mandatory to Carry Out the GST Reconciliation?<\/h3>\n\n\n\n<p>The regulatory authority for GST registration and <a href=\"https:\/\/corpbiz.io\/gst-return-filing\"><strong>GST returns filing<\/strong><\/a> in Singapore is Inland Revenue Authority of Singapore (IRAS). It is mandatory to carry out any of the registration either voluntary GST registration or compulsory <a href=\"https:\/\/corpbiz.io\/gst-registration\"><strong>GST registration<\/strong><\/a>. Hence, it is necessary to file GST returns. The GST reconciliation must be carried out so that an authority does not impose penalties or late fees.<\/p>\n\n\n\n<p>However the GST Taxpayer required paying proper returns to\nthe IRAS. Reconciliation is carried out to reconcile certain amount of\ninformation or data that cannot be avoided in any form of omissions or\nconfusions. The GST reconciliation is required to be carried out in most tax\njurisdictions to avoid any form of discrepancies or penalties.<\/p>\n\n\n\n<p>When the process is carried out, an amount of supply of\ngoods or services provided is matched to number of purchases made. GST reconciliation\ntakes time as the parties have to liaise with different authorities to\nreconcile amounts. Hence, the parties must pay attention towards this process.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_is_GST_Reconciliation_Required\"><\/span>Why is GST Reconciliation Required?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>It is important to conduct GST Reconciliation for the below mentioned reasons:<\/em><\/strong><\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/12\/image-2-1024x597.png\" alt=\"GST Reconciliation Required\" class=\"wp-image-21044\" width=\"588\" height=\"342\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/12\/image-2-1024x597.png 1024w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/12\/image-2-300x175.png 300w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/12\/image-2-768x448.png 768w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/12\/image-2.png 1200w\" sizes=\"(max-width: 588px) 100vw, 588px\" \/><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">Data Error or form of Mismatches<\/h3>\n\n\n\n<p>In case there is any differences &nbsp;arises in a data entered in invoices between\nany seller and taxpayer then GST reconciliation can be helpful. Such differences\nin information can lead to carrying out the process of reconciliation for\nknowing about the correct data.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Non-Tallying of Invoices<\/h3>\n\n\n\n<p>If any information or amounts written on the invoices are\ndifferent then also GST reconciliation can be used to rectify that particular\ninformation.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">The difference in the HSN Code<\/h3>\n\n\n\n<p>If there any difference in HSN code, then GST reconciliation\nis carried out to match the differences.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Internal Records<\/h3>\n\n\n\n<p>The main reason for doing GST reconciliation is to find out\nthe errors in the internal records of a company. If a supplier of goods provides\nany invoices, and such information is not entered correctly in the internal\nrecords, then it will create an issue.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">External Records<\/h3>\n\n\n\n<p>The process for reconciliation can also be considered if\nexternal records have no information. For instance, records of the GST invoice\nand data is present in the internal records of the firm or entity. In case the information\nis not present with the supplier or seller, then GST reconciliation will be\nutilised.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_happen_in_case_GST_Reconciliation_is_not_carried_out\"><\/span>What happen in case GST Reconciliation is not carried out?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>It is important to carry out the process of GST reconciliation.\nIn case the business will not carry out the process of reconciliation regularly,\nthen the following instances can happen:<\/p>\n\n\n\n<ul><li>Not Conducting Reconciliation process will\nfrequently lead to mismatches and errors while computing the GST.<\/li><li>It will lead to delay in carrying out the filing\nof GST return with the IRAS.<\/li><li>It may also cause penalties.<\/li><li>Errors and Omission will also drastically reduce\nthe reputation of the company with the IRAS.<\/li><li>It is important to consider the GST\nreconciliation process in case you want to avail any benefits under Singapore\nInput Tax Credit.<\/li><li>In case a company is not carrying out the\nprocess of GST reconciliation then it will not allowed a vendor to claim any\nspecial benefit of input tax credit.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Domestic companies &amp; international companies having the business in Singapore must require registering with an authority for GST return filing. It is necessary to file GST return in Singapore in case any specific criteria have been met according to the authority. GST is the indirect tax that is levied on the goods manufactured and services rendered in Singapore. It is levied on any form of goods that are also imported in Singapore. Hence, any company which imports goods and products into Singapore would require to pay GST.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/analysis-on-gst-registration-in-singapore\/\">Detailed Analysis on GST Registration in Singapore <\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Singapore is the largest financial centres, due to which international businesses are booming there. Companies that set up business in Singapore have to register with the Inland Revenue Authority of Singapore (IRAS), for filing GST and other forms of tax returns. GST Reconciliation in Singapore is the process where data or input provided by a [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":21045,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[16],"tags":[1278],"acf":{"service_id":"334"},"authorName":"Soumya Bajpai","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/01\/0.jpg","authorDescription":"Soumya has done LLB (Hons) and has a 2+years experience in writing. Her main interest is in reading judgments, new enactments and amendments taking around in law. She always strives to bring the best to work that she does.","postViews":4086,"readingTime":5,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/21043"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=21043"}],"version-history":[{"count":5,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/21043\/revisions"}],"predecessor-version":[{"id":21050,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/21043\/revisions\/21050"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/21045"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=21043"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=21043"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=21043"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}